d) Term /Rights attached to Equity Shares

"The company has only one class of equity shares having a par value of ' 5/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts.

The distribution will be in proportion to the number of equity shares held by the shareholders."

e) The Board of Directors, in its meeting on 29th May, 2024 have proposed a final dividend of ' 3 /- per equity share for the financial year ended 31st March 2024. The proposal is subject to the approval of the shareholders at the Annual General Meeting to be held and if approved, would result in a cash outflow of approximately ' 156/-lacs.

Nature of Reserves Securities Premium

Security Premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve

The General reserve is used from time to time for transfer of profits from surplus in statement of Profit and Loss for appropriation purposes.

Capital Reserve

This reserve represents the subsidy from Government, amount received upon reissue of forfeited shares and credit on forfeiture of share warrants.

Equity Investment Reserve

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net off amounts reclassified to retained earnings when those assets have been disposed off.

Retained Earning

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

23 COMMITMENTS AND CONTINGENCIES

a. Other Commitments

Estimated amount of contracts to be executed on Capital accounts and not provided for446.74 Lacs (P.Y. Rs. 795.30 Lacs) advance there against ' 154.18 Lacs (P.Y.Rs. 184.08 Lacs).

b. Contingent liabilities

c) Outstanding Performance Bank Guarantees issued to Banks Rs.1924.68 Lacs (P.Y Rs.2187.86

24 On the basis of physical verification of assets, as specified in Indian Accounting Standard - 36 and cash generation capacity of those assets, in the management perception, there is no impairment of such assets as appearing in the balance sheet as on 31.03.2024.

25 Certain Balances under Advance from Customers, Trade Payables, Trade Receivables and Advance to suppliers are subject to Confirmation.

27 CAPITAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis gearing ratio which is calculated by dividing the total borrowings by total equity. The company's strategy is to maintain a gearing ratio as possible as lower. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

28 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Indian Accounting Standard-24 on "Related Party Disclosures" issued by the ICAI has been identified and given below;

1. Enterprises where Control Exists: Bajaj Coneagle LLC (Wholly Owned Foreign Subsidiary)

Bajaj Steel Industries (U) Limited (Wholly Owned Foreign Subsidiary)

2. Other Related parties with whom the Company had transactions:

(a) Key Management personnel and there relatives:-Shri Rohit Bajaj (Chairman cum Managing Director), Shri Sunil Bajaj (Executive

Director),Shri Mahendra Kumar Sharma ( Whole time director and CEO of the Company),Shri Manish Sharma (Chief Financial Officer),

Shri Rachit Jain (Company Secretary).

Relatives :- Smt Devika Bajaj, Shri Lav Bajaj,Shri Kush Bajaj, Shri Vedant Bajaj,Shri Varun Bajaj

(b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant Influence-Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Bajaj Global Limited, Vidarbha Tradelinks Pvt. Limited, , Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Luk Infrastructure Private Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Bajaj Gintech Pvt. Ltd., Bajaj Reinforcement Pvt. Ltd., Daivik Moringa Pvt. Ltd., Rukmani Metals & Gaseous Pvt. Ltd.

31 The Company has not received full information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amount unpaid as at year end together with interest paid /payable have been given based on the information so far available with the company/ identified by the company management. As required by schedule III of companies Act, of the above said Act the following information is disclosed:-

(i) The Company's lease asset primarily consist of leases for land and buildings, Plant and Machinery and Vehicles for factory and offices having the various lease terms. Effective from April 1, 2019, the Company adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method. Consequently, the Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate as on the date of transition and has measured right of use asset at an amount equal to lease liability adjusted for any related prepaid and accrued lease payments previously recognised.

(ii) The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date,

(b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term and low value lease on the date of initial application,

(c ) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application,

(d) Applied the practical expedient by not reassessing whether a contract is, or contains, a lease at the date of initial application. Instead applied the standards only to contracts that were previously identified as leases under Ind AS 17.

(e ) Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease.

(iii) Following is carrying value of right of use assets recognised on 31st March, 2024 and the movements thereof during the year ended March 31,2024:

(v) The maturity analysis of lease liabilities are disclosed in Note- 2.15.

(vi) The weighted average incremental borrowing rate applied to lease liabilities as at April 1,2024 is 11%.

(vii) Rental expense recorded for short-term and low value leases was Rs.4157824/- for the year ended March 31,2024.

(viii) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(F) Details of Benami Property held:

No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder as at 31 Marc 2024.

(G) Wilful Defaulter:

No bank or financial institution has declarad the company as "Wilful! defaulter”.

(H) Registration of charges or satisfaction with Registrar of Companies:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done. No registration or satisfaction is pending as at 31 March, 2024.

(I) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or statements of current assets filed by the Company with banks are generally in agreement with the books of account.

39 a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.